If a Private Company commits any fault in any of the 3 above mentioned conditions regarding exemption from applicability of Companies (Auditor's Report) Order, 2003(section 227(4A), the particular Private company has to report on the matter regarding

Clause 4(vii)
which states that

"in case of listed companies and/or other companies having a paid up capital and reserves exceeding Rs. 50 Lakhs as at the commencement of the financial year concerned or having an average annual turnover exceeding Rs.5 Crores for a period of three consecutive financial years immediatel preceeding the financial concerned, whether the company has an INTERNAL AUDIT SYSTEM commensurate with its size and nature of its business "